Things are bad in SA, but fund managers are still choosing local | Business

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The outlook for the South African economy may be dire, but the same is not true for its financial markets, asset managers say. | News24_Business

is organised by the Collaborative Exchange and held annually in March in Cape Town and Johannesburg.

Krüger said M&G’s research has also shown that it is not optimal to take offshore exposure for a South African investor well beyond 35%, as the currency exchange rates introduce volatility. Justin Floor, the co-manager of this fund, says it is important to take the temperature of certain cycles before you move money offshore.

It is good to have offshore exposure as it gives you good diversification away from South African market risks which are real, but you should not invest at any cost, he said. He says while 2022 was a disaster for international investors who lost 15 to 20 % in equities and bonds, this was not the case for SA because our starting prices were very different compared to expensive global shares and bonds.Slabber said some local shares are offshore earners and less affected by the local economy.

 

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